President Joe Biden has sought to reassure Americans that the nation’s financial system is safe after the recent collapse of two banks, Silicon Valley Bank and Signature Bank in New York.
In a statement on Monday, the president said that customers of these banks could rest assured that their deposits would be protected and accessible.
He also emphasized that the federal government was stepping in to ensure consumers had access to their money, but Treasury Secretary Janet Yellen insisted that there would be no bank bailouts like those seen in 2008.
Instead, regulators plan to back all SVB deposits and those at Signature Bank in New York, covering the costs with the FDIC’s Deposit Insurance Fund.
The move aims to calm financial markets before trading resumes.
Experts have identified the recent interest rate hikes as a root cause of the bank failures, and the White House hopes to ease fears that more banks could follow.
President Biden has vowed to hold those responsible for the collapse of the two banks accountable in Washington.